Trading

Dump

A rapid, heavy sell-off that drives price sharply lower, sometimes coordinated to catch other traders.

To dump is to sell hard and fast, pushing price down. It can be ordinary, a fund or whale unloading a large position, or deliberate, the back half of a pump-and-dump where insiders sell into hype they manufactured.

Dumps hit illiquid coins hardest. A token with a thin order book can lose a third of its value on a single large sell. The word also doubles as a verb traders throw at any sharp red candle, whether or not anyone planned it.

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